Section 3
Abolition of proprietory rights.— Notwithstanding anything to the contrary contained in any usage, settlement, contract, grant, sanad, order or other instrument, or any law for the time being in force, with effect on and from the appointed date —
3. Abolition of proprietory rights.— Notwithstanding anything to the contrary contained in any usage, settlement, contract, grant, sanad, order or other instrument, or any law for the time being in force, with effect on and from the appointed date —
(i) all rights, title and interest of every proprietor in or in respect of all lands held by him as proprietor shall be deemed to have been extinguished; and
(ii) all such rights, title and interest in such lands shall stand transferred to and vest in the Central Government free from all encumbrances, and every mortgage, debt or charge on any such right, title and interest in or over such lands shall be a charge on the amount of compensation payable to such proprietor under this Act;
(iii) where under any agreement or contract made before the appointed date any rent or other dues for any period after the said date has been paid to or compounded or released by a proprietor, the same shall, notwithstanding such agreement or contract, be recoverable from the proprietor and may, without prejudice to any other mode of recovery, be realised by deduction from the compensation payable to the proprietor under this Act.